Wolseley will cut 800 jobs in Britain, or about 13% of its UK workforce, in a move that takes job losses unveiled by the plumbing and heating products group so far this year to 1,000.

Wolseley said it would shut 80 UK branches and a distribution centre in Worcester to save £25m-£30m a year. The job reduction programme, prompted by a drop in demand for materials to maintain and upgrade buildings, will start soon.

Group trading profit for the year to 31 July – excluding exceptional items and impaired assets – rose 7% to a record £917m. Pre-tax profit rose to £727m from £508m.

John Martin, Wolseley’s chief executive, told analysts: “Financial performance [in the UK] has deteriorated and that’s not where we want it to be. I’m not happy with this performance … Regrettably this will result in job losses which we will handle sensitively.”

Wolseley’s shares, which are up 12% this year, fell 3.8% to £41.35 in early trading.

The company employs almost 6,100 people in the UK and has 737 branches including 600 serving the plumbing and heating trade. After the overhaul, which will take two or three years, plumbing and heating branches will trade under the Wolseley name, scrapping brands including Pipe Center and Drain Center.

Martin, who took over as chief executive last month, said Wolseley had been too optimistic about its UK business and that the cuts were not a response to uncertainty caused by Britain’s vote to leave the EU.

“We have probably overestimated where we thought the market demand would be. A lot of people overestimated UK growth … I think this strategy would have been very similar [without the vote to leave] and Brexit looks too early to call.”

Group profit rose due to strong trading at Wolseley’s US business, which makes up more than 80% of profit. US trading profit rose 6.3% to £775m.